By OGJ editors
HOUSTON, June 2 – The US subsidiary of Lynden Energy Corp., Vancouver, BC, signed a participation agreement to acquire a 50% interest in an option to acquire oil and gas leases on 101,495 gross and net acres in Coke, Mitchell, and Sterling counties, Texas.
The acreage is on a ranch whose lands were recently optioned by CrownRock LP, Lynden’s partner in an existing West Texas project. The ranch is west of Jameson oil field and 10 miles southeast of the Iatan oil field.
The project will focus on Permo-Pennsylvanian-aged detrital targets on the Permian Basin eastern shelf where there are numerous opportunities across several pay zones no deeper than 8,000 ft.
Two wells are to spud 14 miles apart in June 2010. CrownQuest Operating LLC, Midland, is the operator. One location is on the west side of the ranch less than 2 miles from a well that has produced more than 190,000 bbl of oil equivalent. The other is 4 miles northwest of Jameson field.
Lynden can earn its interest in the option by paying 100% of the cost to drill and complete the first two wells up to $2.4 million and by making additional payments to CrownRock totaling $3 million. The option can be converted into a lease(s) through other payments to the mineral rights owners. The option has an initial term of 18 months with provisions for an 18-month extension.
